Hyundai aims at a flexible powertrain strategy for its product portfolio and hopes the diesel share in its passenger vehicle sales will drop to 30-35
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Hyundai Motor India hopes sales of its diesel engine-powered passenger vehicles to slump to nearly 30-35 per cent in 2024, down from the current 40 per cent, said the automaker’s COO Tarun Garg to Mint. His comment comes at a time when the country is witnessing a gradually declining sales trajectory for diesel-powered passenger vehicles amid rising demand for electric vehicles and tightening emission norms. The fast surging price of diesel vehicles compared to their petrol counterparts is another reason behind the sales drop of diesel cars.
While major players like Maruti Suzuki have been showing an inclination towards a petrol-only strategy, Hyundai offers a mixed portfolio of petrol, diesel, CNG and electric vehicles in the country. Interestingly, the South Korean auto giant hopes to see 65 per cent of its total sales being contributed by SUVs in 2024, a category where customers prefer higher fuel efficiency and torquey diesel motors in the larger segments. However, at the lower end of the SUV segment, consumers opt for petrol and CNG for better fuel efficiency.
Also Read : 2024 Hyundai Creta facelift launched at ₹11 lakh, looks to extend dominance in segment.
Speaking about the rapidly changing market dynamics, Hyundai India’s COO said that diesel used to account for 60 per cent of the brand’s sales in the country at its peak, with petrol accounting for 40 per cent. However, the trend has reversed with diesel now accounting for 40 per cent. “Diesel used to account for 60 per cent of our sales at its peak, with petrol accounting for 40 per cent, but now the trend has reversed with diesel accounting for 40 per cent, which is good and in line with the industry direction. This year, it seems that 38-40 per cent will be diesel, but because of our new turbo petrol engine, some diesel volumes may shift to that and diesel may account for 30-35 per cent of our sales,” Garg reportedly added.
He also added that the company needs to be much more flexible because there are so many variables at play, which makes it difficult to project a powertrain mix. “We are not a major player in EVs but a leading EV player is saying it’s difficult to have a target, so we are making our production lines very agile to quickly adapt to customer demand,” he reportedly said.
Hyundai hopes SUV sales won’t exceed 70 per cent
Hyundai India expects the sales of SUVs will not exceed 70 per cent. Garg said that the penetration of SUVs in the company’s total sales will be around 65 per cent in 2024 and it won’t cross 70 per cent. “My saturation point will be less than 70 per cent because we’re still a full-range manufacturer 70 per cent. Our SUV penetration will be around 65 per cent in 2024 and then I think we’ll fall in the range of 65-70 per cent, but not cross it. For the industry, SUV sales were at 49 per cent last year, and this year is likely to be close to 52 per cent. I don’t see industry SUV penetration levels also crossing 55 per cent,” he reportedly added.
First Published Date: 17 Jan 2024, 09:45 AM IST
